Autumn 2021 Budget
HM Treasury has announced that Chancellor Rishi Sunak will delivery the Autumn 20201 budget on Wednesday 27th October.
The Chancellor said:
“Despite the worst economic recession in 300 years, we have not only got people back into work through the plan for jobs but continued to deliver on the priorities of the British people.
At the spending review……I will set out how we will continue to invest in public services and drive growth while keeping the public finances on a sustainable path.”
End of Furlough Scheme
The Government’s Coronavirus Job Retention Scheme (CJRS) ended on 30th September after supporting millions of workers during the pandemic.
The Government said the wages of more than 11 million people were subsidised for at least some of the scheme’s duration at a cost of around £70 billion.
Economists say there is likely to be a rise in unemployment due to new redundancies despite the fact that some may be able to find work in recovering sectors such as travel and hospitality.
Covid Sick Pay Scheme Closed
The Government’s scheme that enables small businesses to recoup statutory sick pay costs caused by COVID-19 closed at the end of September.
Before the COVID-19 pandemic, employers were obliged to pay Statutory Sick Pay (SSP) to eligible employees unable to work because of sickness. It is paid at a flat rate of £96.35 (at the current rate) for up to 28 weeks. The full cost of SSP is met by the employer.
To support employers during the pandemic, the government allowed certain small and medium size employers to reclaim some, or all, of their SSP costs from HMRC.
Under the new regulations, employers will not be able to claim SSP from 30th September 2021 and any claims relating to periods prior to that date must have been filed by December 2021.